The post Solana-Based Jupiter (JUP) Defies Market Slump, Here’s Why appeared first on Coinpedia Fintech News
Today, January 25, 2024, the overall cryptocurrency market seems to be struggling. Amid this, Solana-based decentralized exchange Jupiter’s native token, JUP, is defying the market trend with an impressive price gain. Over the past 24 hours, this massive price surge has garnered significant attention from traders and investors.
The Reason For Jupiter’s Price Surge
The potential reason for this massive upside rally is that Jupiter has acquired a majority stake in Moonshot for an undisclosed sum. In a post on X (formerly Twitter), Jupiter’s pseudonymous founder, “Meow,” revealed the acquisition. Moonshot is a crypto-based company that enables users to buy and sell meme coins on iOS and Android.
This acquisition creates additional growth opportunities for the decentralized exchange.
$6.5 Million of JUP Inflow
However, amid this upside rally, long-term holders and investors were found dumping their holdings, as reported by the on-chain analytics firm Coinglass. Data from the spot inflow/outflow revealed that exchanges witnessed an inflow of JUP worth $6.5 million in the past 24 hours.
This massive inflow onto exchanges indicates a potential sell-off by investors. Additionally, this could increase selling pressure, potentially leading to a short-term price correction and further price decline.
Current Price Momentum
JUP is currently trading at around $1.01 and has experienced a price surge of over 17% in the past 24 hours. During the same period, its trading volume increased by 95%, indicating heightened participation from traders and investors compared to the previous day.
Jupiter (JUP) Technical Analysis and Upcoming Levels
According to expert technical analysis, the recent price surge has brought JUP to a strong resistance level at $1. Historically, this level has acted as a point of selling pressure. Since December 2024, JUP has reached this level twice, and each time, it experienced a price decline.
However, this time, the sentiment has shifted, and with the recent acquisition, there is a strong possibility that JUP could break through this resistance level.
Based on the recent price action, if JUP breaks through the resistance level and closes a daily candle above the $1.05 mark, there is a strong possibility it could surge by 37% to reach the $1.40 level.
On the positive side, with a Relative Strength Index (RSI) of 55, JUP still has enough room to continue its rally and reach the predicted target.